Brits on Universal Credit could get longer to pay back debts caused by 5-week wait

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BRITS on Universal Credit could soon get longer to pay back debts caused by the five-week wait for a first payment.

Ministers are said to be “looking at” giving claimants longer to pay back their debts and give them some much needed breathing space.

Universal Credit form and money
Brits on Universal Credit could get longer to make payments

Under the current system, people on the six-in-one benefit have to take out an “advance” against their future benefits due to the five-week wait for their first payment.

They then have 12 months to repay the advance, a time limit that will be extended to 16 months from October next year.

Speaking today, Work and Pensions Minister Will Quince revealed: “I’m very sympathetic to it extending further and I’m looking at that in detail.”

The Commons Work and Pensions Committee has now launched an inquiry into the long wait.

Last year the Department for Work and Pensions admitted in August 2019 it deducted £50 million from claimants across the UK to pay back their advances.

Mr Quince has previously defended the repayment scheme and insisted advice is available to those on the scheme.

He said: “Advances are an important tool to help the most vulnerable claimants receive the money they need to live on.

“Proposed repayments of an advance payment are explained as part of the application process, and all claimants are advised to request the level of advance which is manageable when considering the repayments required.”

Under the controversial benefits system, working parents can claim up to 85 per cent of their childcare costs – worth up to a maximum of £646 a month for one child or up to £1,108 a month for two or more children.

But they have to pay these bills in advance before waiting up to a month to be reimbursed. And bills often end up being much higher than what the government pays out.

HOAR is calling for these costs to be paid upfront by the Department for Work and Pensions (DWP) as part of our Make Universal Credit Work campaign.